Sunday, May 19, 2024

According to Gensler, the cryptocurrency market will not ‘last long’ outside of a regulatory framework

SEC chief Gary Gensler has stated that the growing size of the crypto market has necessitated the need for a regulatory framework. Gensler went as far as to claim that the industry would fail to sustain itself without a regulatory regime in place.

Public Policy Framework A Necessity

In the next 5 to 10 years, the crypto market’s future will be safe “within a public policy framework,” the former blockchain professor at MIT told Financial Times.

Gensler further said that platforms will risk losing customer trust by fighting calls to embrace the regulatory framework proposed by officials. The statement comes at a time when the crypto industry has attained a market cap of $2.23 trillion, with Bitcoin (BTC) trading near $50,000.

According to the chief of the Securities and Exchange Commission (SEC), there are many cryptocurrencies that fulfill the criteria to be categorized as securities. Gensler firmly believes that the DeFi sector and exchange platforms would be putting their future at risk by defying to comply and register with the SEC.

Investor Protection A Top Priority

Focused on investor protection, the SEC chairman is weighing up stronger regulatory measures. In fact, the SEC has sought more power from Congress to regulate the crypto sector more efficiently.

This is not the first time an official has emphasized the need for a public policy framework to ensure the survival of the crypto market in the US. Authorities like CFTC and IRS have also subjected the crypto market to regulatory scrutiny in the past over investor security concerns.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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